Extension study update helps Toro's share price rise

Uranium exploration company Toro Energy could reap additional benefits from its flagship Wiluna uranium project, on the back of extending its uranium vanadium processing operation at its Lake Maitland operation.

Toro chairman Richard Homsany told the market on Tuesday that ore from the company's nearby deposits - Lake Way and Centipede-Millipede - could be included at Lake Maitland, 105km south-east of the Wiluna townsite, in the north of the state.

This news helped Toro shares close trade up 9.09 per cent, at 60 cents per share. So far this week, its share price has increased by 20 per cent. 

On Tuesday, Toro announced it had made great progress with its Lake Maitland extension study and would assess the feasibility of including materials from both deposits at the site.

As it stands, wlthout deposits from Lake Way and Lake Way and Centipede-Millipede, Lake Maitland's scoping study economical metrics are solid, with a total earnings before interest, taxes, depreciation and amortization slated at $1.768.6 billion. 

This equates to $101 million per year, across the mine's 17.5 year lifespan. 

"One of our key aims is to strengthen the production schedule at Lake Maitland and to assess the potential to extend the potential processing of high-grade uranium resource well beyond the seventh year of production, as is presently the case for a Lake Maitland only operation," Mr Homsany said.

"Global uranium markets continue to strengthen and fundamentals remain strong.

"Toro’s current and planned development activities at Wiluna will significantly build upon the excellent Lake Maitland scoping study outcomes. Toro remains committed to developing the Wiluna uranium project to maximise its value when both government policy and uranium markets align.”

Toro began its Lake Maitland extension study in October last year, and was confident it would add value to the original scoping study.